Moving everything from one Vanguard fund to another

dllive

Thanks for the replies, very helpful.

I just thought Id add some context in case it changes your views. (apologies, I should have mentioned this in my orginial post)

- I am using the Vanguard platform, so I am restricted to Vanguard funds. (Having said that, I do have a Hargreaves account, so I will take a look at HSBC FTSE All) World. Ive note used the Switch feature. Unfortuantely it seems the 'switch' is not as immediate as Id like. 

- My 'large amount' holding in Vanguard's FTSE Global All Cap Index Fund is £30k. (its relative, my 'large amount' is someone elses 'tiny amount'). I have another 20 years investing horizon, and Im expecting to max my S&S ISA and pension contributions every year, so my £30k holding will increase massively. (if I continue paying into this fund)

So given the above, does that change optinions on whether to pount-cost average out of FTSE Global All Cap Index into FTSE Developed World ex-U.K. Equity Index, or take a chance and do it in one trade? Or perhaps just leave my holding with FTSE Global All Cap Index, and only make further contributions to FTSE Developed World ex-U.K. Equity Index? Or perhaps the 0.9% difference between the 2 funds is too small to even worry about?

(I understand - as has been stated in this thread - Im sort of comparing apples with oranges with these 2 funds, but if we could put that aside for the moment)

Thanks

jimjames

I have already made this change for the reasons given regarding cost. In order to balance the difference in funds I also added satellite funds to cover those missing components of the FTSE Dev World fund. It means the saving in fees is not as much with that blended approach but still cheaper than the previous fund. The difference in charges might not sound much but it's nearly 40% less so overall that's still worthwhile.

dllive

jimjames said:

I have already made this change for the reasons given regarding cost. In order to balance the difference in funds I also added satellite funds to cover those missing components of the FTSE Dev World fund. It means the saving in fees is not as much with that blended approach but still cheaper than the previous fund. The difference in charges might not sound much but it's nearly 40% less so overall that's still worthwhile.

Thats interesting. Can I ask, did you sell your holding all in one go?

I was thinking of adding satellite fund too, to plug-up the gaps.

ColdIron

ColdIron said:

dllive said:

As I understand it, both funds are much the same (albeit that the latter is ex-UK which only accounts for 4% of the world markets) but the latter's OCF is a lot cheaper.

If I were to swap I'd do it in one go, I can't think of any advantage of staggering it

Notwithstanding my comment a couple of things have occurred with me

If you do a partial switch with HL (<90%) they submit the transactions at the same time. I often get the contract note for the receiving fund before the ceding one especially if it's a foreign market. They can't do this for a complete switch as they need to know the exact value of the sale before the purchase

I don't know how Vanguard manage their switches

Also with many platforms you don't need to wait for the trade to settle (i.e. the 3 or 4 days) if the transactions are in the same account (so not Bed & ISA) before making a purchase, and the cash may be available to you once the trade takes place.

It's still a coin toss if being out of the market for a short period works for or against you and the sums would usually be small, too small for me to worry about, but it may be worth investigating how Vanguard operate in these areas

DavidAC

I requested a Vanguard switch on Saturday 9th. The sale part completed on Tuesday 12th. The buy part is still pending. I do not think it is any different from, or faster than, doing a selling transaction and then a buying transaction once the sale has settled. I have not done many switches though, so I might be wrong.

ColdIron

What is the Settlement Date on the contract note?

DavidAC

Incidentally, if you invest into a Vanguard ISA, good luck if you want to transfer out to a cash ISA. I was told by my receiving cash ISA provider that Vanguard were not responding to their requests. After a lot of secure messages to Vanguard it eventually transferred. This was just a £100 test to see how long it took. I was only transferring cash I already had in my Vanguard ISA, so no selling of shares to delay it. Vanguard started a complaint investigation. Eight weeks later they sent me a secure message apologising for the delay and that I could now go to the Ombudsman. They say they will keep me informed.

DavidAC

ColdIron said:

What is the Settlement Date on the contract note?

The contract note was received on 12th, yesterday.

Order date and time: 9 Dec 2023 12:26:16
Transaction date and time: 11 Dec 2023 23:00:00 (Monday as expected)

The sale is shown as completed. The purchase part of the switch is still pending so I presume it is waiting for the sale to settle. No different to selling, waiting for cash to settle and be available, then buying.

ColdIron

Does the contract note cite a Settlement Date? Every one that I have ever seen does

DavidAC

ColdIron said:

Does the contract note cite a Settlement Date? Every one that I have ever seen does

No. As I said, I presume it has not settled because the purchase part of the switch is still pending. I have not read all of this thread so you might have already answered this, is there a reason why you don't switch a nominal amount first to see how the process works and timescale? I did some time ago and from memory switching on a Monday might just about complete by the end of Friday. You will be out of the market for a few days. A few smaller switches could even out market changes between selling and buying.

I have just read some more of this thread and see Barkin answered the process and timescale question yesterday.